YOUR COMPENSATION

1

• YOUR COMPENSATION
• INCLUDES MUCH MORE
• THAN JUST SALARY

2

• BENEFIT PACKAGES
• whats included?
• Health Insurance
• Dental/Vision
• Life Insurance
• Long Term Disability LTD
• Educational Benefits
• Sick Leave
• Vacation Leave
• PTO Paid Time Off
• Retirement Contributions
• Parking
• Childcare Facilities
• Holidays

3

• HEALTH INSURANCE
• Average cost of an office cost - 71
• Average cost of a prescription 67
• Average cost of a MRI - 4,000
• Average cost of a outpatient knee surgery -
  5,000
• Average cost of a birth - 8,000 to 10,000
• Average cost of having your wisdom teeth pulled -
  1,100

4

• HEALTH INSURANCE
• Health Insurance Premiums Rise Twice as Fast as
  Wages and Inflation Kaiser Family Foundation
  September 2006.
• Employer-sponsored health insurance premium
  increased by 7.7 in 2006 more than double the
  rate of growth of wages (3.8) and inflation
  (3.5)

5

• HEALTH INSURANCE
• WHAT DOES THIS MEAN TO YOU as the cost of
  health care costs increase for your employer
  more costs are shifted to you either through
  lower salaries or higher premiums.
• Average annual premiums for single coverage is
  4,242 -(Average annual family premium is
  11,480.)
• Average single employees annual premium is 650
  (Average family premium is 2,973)

6

• HEALTH INSURANCE
• Types of Health Insurance
• Health Maintenance Organizations (HMO)
• Primary care physician coordinates care
• Pre-approved appointments only
• Least expensive plan for employee
• Preferred Provider Organizations (PPO)
• More flexibility
• Payment to health care providers negotiated

7

• HEALTH INSURANCE
• Types of Health Insurance (cont)
• Indemnity Plan or Fee-for-Service
• Offers the most freedom flexibility
• Few employers offer this plan expensive
• Expensive plan for employee
• Not all Blue Cross Plans are the same!

8

• DENTAL/VISION INSURANCE
• Dental plan maybe included in the health plan or
  a stand alone plan that costs extra.
• Dental plans usually pay
• 100 for preventative
• 80 for restorative fillings
• 50 for crowns
• Vision coverage is either included in the dental,
  or stand alone or not offered.

9

• LIFE INSURANCE
• Term Life
• No cash value
• Inexpensive
• Terms at end of employment
• Whole Life
• Has a value
• Cost based on age
• Usually not offered by employers

10

• LONG TERM DISABILITY
• LTD
• One of your most important benefits replaces a
  of your salary if you become disabled.
• An expensive benefit to provide to employees.

11

• EDUCATIONAL BENEFITS
• An important benefit if you want to further your
  education.
• You could be taxed on the value of the benefit.

12

• PAID TIME OFF
• PTO
• Vacation leave and sick leave combined.
• Accrued moves to the next year
• Or
• Use it or lose it at the end of the year

13

• RETIREMENT
• 401(k) Contributions retirement savings plan
  funded by a for-profit employer
• 403(b) Contributions retirement savings plan
  funded by a non-profit employer -

14

• RETIREMENT
• Eligibility Requirements waiting period
• Employer Contributions
• Matching Contributions
• Vesting meaning yours to keep when you leave
  the company can vest immediately or a period of
  time.
• Early Withdrawal no withdrawals except
  hardships, are allowed until you terminate.

15

• RETIREMENT
• Tax-deferred compounding one of the best
  features of either a 401(k) or 403(b) plans.
• Your contributions are pre-tax and money earned
  is also pre-tax until withdrawn.

16

• RETIREMENT
• 1 million in your 401(k)
• Saving just 200 a month or 1.15 an hour for 35
  years assuming 10 interest.
• Waiting 5 years to begin saving you will need to
  save 356 a month or 2.05 an hour.
• Waiting 10 years to begin saving you will need
  634 a month or 3.66 an hour.
• JUST DO IT!

17

• RETIREMENT
• 50,000 salary
• You contribute 10 of your salary into your
  401(k) - 5,000
• 45,000 is your new taxable salary
• Claiming a 45,000 salary instead of a 50,000
  lowers your tax bill by 1,400 (28 tax bracket)
• Because you took advantage of pre-tax
  contributions - your new take home salary instead
  of being reduced by 5,000 is only reduced by
  3,600.
• You are paying yourself first and paying Uncle
  Sam second.

18

• OTHER BENEFITS
• Free Parking
• Holiday Pay
• Childcare Facilities

19

• WHAT IS YOUR REAL COMPENSATION?
• Company A
• Your Salary 70,000
• Health Ins Prem - 1,200
• 68,800
• Retirement Cont 7,000
• 75,800

20

• WHAT IS YOUR REAL COMPENSATION?
• Company B
• Your Salary 75,000
• Health Ins Prem - 2,400
• 72,600
• Retirement Cont 0
• 72,600